By Suzanne Kapner

Walk through any mall at this time of year and you're bound to hear the typical sounds of the season: Christmas carols. Children crying on Santa's lap. People bragging about their Kohl's Cash.

In fairness, it's hard not to feel like you bagged a trophy when you've amassed enough of the coupons to spend a mere 15 cents on a sweater.

"I had to dig around in my purse because -- who carries change?" said Lisa Sass, a 34-year-old communications manager in Phoenix. "That was a total score."

Kohl's has gotten a lot wrong in the past year -- widely panned store changes, declining sales, an ousted CEO. One thing nobody seems to have a problem with is its program for rewarding loyal shoppers. For every $50 they spend on qualifying purchases, they earn $10 in Kohl's Cash, which is just as good as real money as long as they use it on specified dates.

With few restrictions for redeeming the rewards, die-hard shoppers have turned stacking the coupons into a sport.

Kohl's Cash is fast becoming part of popular culture, much the way Bed Bath & Beyond's "Big Blue" oversize 20% off coupons were a touchstone before the retailer filed for bankruptcy.

In a video that went viral, NFL quarterback Kirk Cousins appeared on ESPN and showed off a necklace the retailer made for him that looks like a Kohl's Cash coupon.

Some retailers woo shoppers with exclusive experiences. Others give them early access to sales or new collections. For Kohl's shoppers, the adrenaline rush is "the tangible thrill of using a large coupon for a significant discount at checkout," said Isabella Rossi, who is 31 and lives in San Francisco.

Rossi, who works for an online dating and social media app, strategizes to stretch her Kohl's Cash. "The trick is to wait for a good sale," she said. "If I'm careful, I can find a small item where the sale price, after the extra discount, is the exact amount of my Kohl's Cash." Rossi recently bought a $19 T-shirt that was on sale for 50% off and used her Kohl's Cash to cover the balance.

Though most retailers offer some type of financial rewards, Kohl's program stands out for its generosity and ease of use, said Ted Rossman, a senior analyst at personal finance company Bankrate.

Maybe too generous and easy.

In August, a St. Louis man was convicted of swindling $200,000 from Kohl's, according to the U.S. attorney for the eastern district of Missouri. First, he would use Kohl's cash to make a purchase at a store. Then, he'd immediately use the same Kohl's Cash to order merchandise online, knowing the in-person transaction hadn't yet been registered. He returned the items he purchased in the store for a refund in Kohl's Cash, so he could repeat the scam, which he did more than 100 times at 40 different stores.

Then there are the Kohl's Cash one percenters. People who sign up for Kohl's loyalty program earn 5% on purchases, which is converted to Kohl's Cash. The amount rises to 7.5% if you have a Kohl's credit card. Plus, they get other offers and discounts.

Rachel Tabacnic recently bought a water bottle, a glass soap pump and three large bath towels. Half of the $71.96 purchase price was covered by Kohl's Cash and other rewards from the loyalty program.

"I don't have to feel guilty about shopping," said the 42-year-old publicist in Parkland, Fla.

Rewards programs are getting more popular as shoppers tighten their budgets. The use of cashback-related gift cards more than tripled in 2024, compared with 2023, according to Tillo, a rewards and incentives platform.

"It's like found money," said Bill Warshauer, Tillo's chief revenue officer.

The risk for Kohl's is customers become so dependent on the coupons that they don't shop without them.

Marcia Layton Turner was looking for socks when she realized her Kohl's Cash had expired. The 60-year-old ghost writer in Pittsford, N.Y., left the store without making a purchase.

The Menomonee Falls, Wisc., retailer says it more than makes up for the cost of the giveaways by incentivizing future purchases. Shoppers in general tend to spend 38% more than the value of the coupon when redeeming rewards, according to Tillo. Also, a portion of the rewards are never redeemed, which lowers the true cost to the company.

Kohl's new CEO Michael Bender told analysts in November that the company's rewards program helps drive repeat trips and positive brand perception.

One thing that vexes customers and employees are the expiration dates, which can vary from one week to a month.

"Within the first half-hour of my shift today, I had 4 people very unhappy they couldn't use their KC that expired yesterday," one employee wrote on Reddit.

Kathy Gilchrist, a 51-year-old bookkeeper in Pine River, Minn., goes so far as to mark the dates on her calendar when her Kohl's Cash is valid to ensure she uses it before it expires. The sense of urgency is what makes the perk so much fun.

"It's a gamification of shopping," she said.

Write to Suzanne Kapner at suzanne.kapner@wsj.com

(END) Dow Jones Newswires

December 15, 2025 05:30 ET (10:30 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.